SunOpta: Assets of Lorton's Fresh Squeezed Juices Acquired
SunOpta Inc. announced that its indirect wholly-owned subsidiary, SunOpta Global Organic Ingredients Inc. ("SunOpta Food Solutions"), has completed the acquisition of the assets and business of Lorton's Fresh Squeezed Juices, Inc. ("Lorton's").
Located in San Bernadino, California, Lorton's is a vertically integrated producer of a variety of citrus based products in both industrial and packaged formats, with revenues of approximately $10 million. The acquisition expands SunOpta's vertically integrated operations into the extracting, processing and packaging of citrus based ingredients through consumer packaged products. These facilities have capacity for further growth and expansion.
Purchase price for the assets and business was $2.5 million, on a debt free basis, subject to post closing working capital adjustments, plus a potential earn-out dependent upon the achievement of certain future targets. The acquisition of Lorton's assets and business is expected to be accretive to SunOpta in fiscal 2012.
Tom Treinen, President of Lorton's commented, "I am pleased to enter into this transaction with SunOpta and to remain with the business operations, leveraging our joint capabilities. I look forward to growing the business together based on our commitment to supplying healthy natural and organic products to the marketplace. I would like to thank our loyal customers and the dedicated employees of Lorton's for their commitment and hard work as we now join the SunOpta family."
Joseph Stern, President of SunOpta Food Solutions commented, "We are very pleased to have completed this transaction as it enables us to vertically integrate and expand our industrial and retail citrus products business. We welcome Tom and all of the Lorton's employees to SunOpta. Lorton's has been a long standing supplier to SunOpta for our citrus program and this transaction continues the evolution of our strategic relationship. We believe that controlling our own operation will allow us to cost-effectively expand our industrial and packaged citrus programs."
Steve Bromley, President and Chief Executive Officer of SunOpta Inc. commented, "This acquisition will leverage our strengths in sourcing and supply of citrus products and further strengthen our vertically integrated model from sourcing through ingredients and finished packaged products. This is consistent with our strategy to continue to grow our core value-added natural and organic foods platform. We would like to welcome Tom and his dedicated team to SunOpta."
About SunOpta Global Organic Ingredients Inc.
SunOpta Global Organic Ingredients Inc. is a company within the SunOpta International Foods Group. The company provides natural and organic consumer products solutions to the retail and foodservice markets. The company focuses on organic private label turn-key solutions in a variety of product categories, including juices, frozen fruits and vegetables, specialty beverages, vitamin waters, electrolyte waters, energy drinks, soups and tomato products.
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on natural, organic and specialty foods and natural health products. The Company specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically vertically integrated business models. The Company's core natural and organic food operations focus on value-added grains, fiber and fruit based product offerings, supported by a global infrastructure. The Company has two non-core holdings, a 66.4% ownership position in Opta Minerals Inc., a producer, distributor, and recycler of environmentally friendly industrial materials; and a minority ownership position in Mascoma Corporation, an innovative biofuels company.
Forward Looking Statements
Certain statements included in this press release may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, management's expectations regarding the transition and integration of the acquired business, revenue and earnings expectations of the acquired business, the expansion and market position of the combined business and our growth strategy. Terms and phrases such as "will be", "is expected", "enables us", "we believe", "strengthen", "will allow" and other similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on information available to us on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances. Whether actual timing and results will be consistent with expectations and predications of the Company is subject to many risks and uncertainties that could cause actual results to differ materially from the company's expectations and predictions, including our ability to successfully integrate and leverage the acquired business, the continued supply of citrus fruit and the demand for citrus based products and nutritious portable foods in general, as well as those risks detailed under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.
SOURCE: SunOpta Inc.
CONTACT: SunOpta Inc.
Steve Bromley, President & CEO
Tony Tavares, Vice President & COO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103